It was only five years ago that people were predicting the demise of the medium-car market. Some pundits claimed there was little need for the category, with buyers either migrating to bigger-than-ever small cars or sticking with sharply priced, locally made large cars.

Subaru's Liberty, however, defied the doomsayers, managing to slice away its fair share of sales.

Now there's a new Liberty better prepared for life in the mid-sized fast lane. The fifth generation brings a bigger body and a design that seems to be more about turning heads than looking stylishly understated.

Accompanying the sales pitch is the more-power-for-less-fuel story that's becoming familiar in showrooms.

Advertisement

You can still choose between sedan and wagon body styles, with the latter forming the basis for the raised and rugged-looking Outback. More on that in a few weeks.

What do you get?

There's a Liberty model for everyone. Almost. It begins with three broad themes: the entry-level 2.5i model, a Sports and a Premium. Then you can mix and match, such as the Sports Premium we've tested here.

Subaru was one of the first brands to buck an industry agreement and begin marketing its favourable NCAP independent crash results. The latest Liberty gets the maximum five-star rating, meaning it comes with things such as a stability-control system.

There are also airbags all around, including curtains and a driver's knee airbag.

The additional seatbelt reminders for the rear three seats are a top idea, too, although we did unearth one foible. If you drop off rear-seat passengers, the system thinks someone is unbuckled so beeps annoyingly. Still, it's a minor blemish on an otherwise great feature.

What's inside?

Space was something previous Libertys had been sparing with but the new Liberty uses extra centimetres and smarter design to its advantage. There's more adjustability to the driver's seat, which makes it easy to find a good driving position.

The rear seats are far more useful for adults, with generous leg and headroom. The extra width to the cabin is also noticeable, ensuring greater distance between occupants.

The audio system is high on the dash, close to the driver's line of sight, while there's a generous centre console and cupholders. There's a dark formality to the hues and the upper plastics are hard but it looks upmarket and is user-friendly.

Disappointingly, there's no button on the bootlid. Another oversight in the sedans is the lack of a split-folding seat, which means bulky items may be stymied in the load area that, impressively, conceals a full-size spare. For many, that makes the $2000 premium for the wagon worth the spend.

Under the bonnet

The signature four-cylinder "boxer" engine is back for duty in this Liberty. The 2.5-litre unit has been tweaked for extra output, now delivering 123kW and 229Nm of torque. Despite the Sports name, there's no extra power on the model we tested; for that you'll have to step up to the turbocharged GT (195kW) or the six-cylinder 3.6R (191kW).

While a six-speed manual is available on the entry level Liberty, most owners will opt for the continuously variable transmission auto that's standard from Sports models up.

Take off from a standstill and the transmission will quickly build revs then hold them, with the actual revs determined by the car's speed. If you get enthusiastic around slow-speed corners the CVT will adapt and hold higher revs, making it easier to access the peak power.

But it won't necessarily allow you to tap in to the higher revs if you've been cruising on a freeway and go to overtake, instead holding about 4000rpm or 4500rpm.

The four-cylinder is eager and willing to rev but sometimes feels restrained by the transmission. It's perky around town but is dulled slightly on hills.

The CVT has a manual shift function that allows you to toggle between six pre-set ratios in the manner of a regular auto. It's selected via paddles on the steering wheel.

Impressively, the CVT is a big contributor to the lower fuel economy that's a highlight of the new Liberty. Its claimed use of 8.4 litres per 100 kilometres is 0.5L/100km better than the manual and ahead of prime competitors. It's also an achievable figure in everyday driving, reducing refills.

On the road

It's reassuring to know wheelspin won't be an issue thanks to the all-wheel-drive system. That also helps the Liberty feel planted on the road. It laps up corners and feels confident, only getting mildly fazed on aggressive mid-corner bumps.

Grip levels are high on the Sports model, with the 18-inch tyres hanging on tenaciously. Brakes, too, are progressive and effective. It disposes admirably of speed humps but gets jiggly over smaller bumps.

On country roads it can be testing, upsetting an otherwise composed driving experience.

Verdict

The Liberty evolves an impressive lineage with a far more useful body and an engine that delivers on performance and economy. Its spacious cabin brings family-size space and melds with generous equipment levels to deliver value.

The Liberty is at the pointy end of the super-competitive mid-size category, albeit with the occasional hiccup. There's also a caveat with our judgment. The Liberty is a 4-star car but the sharper suspension on the Sports model doesn't suit the cruisy nature of the non-turbo engine, relegating it to four stars.